Binance is set to investigate the tokenization of up to $2 billion in bonds, treasury bills, and commodity reserves within Pakistan, Reuters reported on Friday.
The memorandum of understanding (MOU) with the world’s leading cryptocurrency exchange by trading volume showcases Pakistan’s initiative to leverage blockchain technology for enhancing liquidity and drawing foreign investment as it considers a formal crypto regulatory framework.
The Finance Ministry of Pakistan mentioned that this initiative could lead to the tokenization of additional real-world assets owned by the government, facilitating their distribution on blockchain platforms.
This announcement follows a day after Bilal Bin Saqib, Chairman of Pakistan’s Virtual Assets Regulatory Authority (VARA), shared during a video interview with CoinDesk plans to promote cryptocurrency adoption, harness Bitcoin mining, and introduce a national stablecoin.
Pakistan’s regulatory initiatives align with a broader global trend. Countries like the United Arab Emirates, Japan, and regions within the European Union are enhancing formal licensing regulations for cryptocurrency exchanges amidst increasing global regulatory scrutiny.
Changpeng Zhao, the founder of Binance, expressed that the agreement serves as “a great signal for the global blockchain industry and for Pakistan,” emphasizing that it represents the beginning of a comprehensive implementation of the tokenization initiative.
Additionally, according to Reuters, the VARA announced today that it granted preliminary approvals to Binance and HTX following an evaluation of their governance and compliance measures, enabling them to register on the Anti-Money Laundering system, establish local branches, and prepare comprehensive applications.
Binance has not yet responded to a request from CoinDesk for further details.
